| Rainmaker routinely
prepares medical
office building capital funding proposals for new construction
medical office buildings ("MOBs") in addition to market
feasibility studies, financial feasibility studies, business plans and
private placement offering memorandums. Most medical office
building capital funding proposals focus on the FHA/HUD
loan insurance title as the key capital funding element supporting the
development and construction expenses associated with a new MOB project.
But, HUD is not the only player who has an ongoing interest in the
development financing of new medical office building projects.
Recently, institutional investors have made a definitive impact in both
the bond markets where a given project issue is floated on the basis of
it being a higher-yielding unrated bond (junk bond). Investment
bankers and mortgage bankers play a key role here in providing the sales
support necessary to sell out a given issue. Commercial banks area
also well-established in the MOB arena, but the collateral posting
requirements that commercial banks typically require usually precludes
the commercial bank route from being a cost-efficient alternative.
This means that private placements of debt (senior secured notes) into
the institutional market would seem to be the way to go because the HUD
route dramatically increases the carrying costs associated with the
proposed project due to the long application lead times that a HUD
proposal would have to endure. This means a commitment of more
at-risk capital must be made (instead of less) to the project, thus
reducing the developer's (or owner/operator, as the case may be).
This would suggest that a comprehensive entitlements review be
undertaken as part of the due diligence review process that is incumbent
upon the developer to undertake as part of the market feasibility
analysis reporting process. The due diligence review is where
Rainmaker can play a pivotal role in your MOB development program.
Rainmaker is a commercial real estate due diligence and
development finance consulting group. Rainmaker provides
comprehensive entitlement reviews to identify all of the prospective
local, state and/or federal investment incentives that can be brought to
the table as part of a structured
financing approach to fulfilling the capital funding plan proposal's
development. Rainmaker also provides market
feasibility studies, financial
feasibility studies, business
operating plans, private
placement offering assistance, negotiations
assistance and development
management consulting for each phase of your project's genesis from
pre-development phase due diligence through to the completion of the
initial lease-up phase of the emerging project. Rainmaker is here
to serve you and assist you in realizing all of the potential success
your MOB project can attain.
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